Severe crisis looms over TN cotton industry - SIMA

07 Mar '08

4 min read

Government may consider allowing exports only through the Federations like Cotton Corporation of India (CCI), Maharashtra Federation, etc, to ensure that only the surplus cotton is exported after reserving the required quality and quantity of cotton for the domestic sector.

Dr.Srinivasan has said that the textile industry in Tamil Nadu has been the worst hit in the current environment due to unprecedented acute power shortage prevailing in the State.

TNEB has announced one-day power holiday in a week which was agreed upon by the industries on 29.02.2008 before the Hon'ble Electricity Minister. At the meeting, the Hon'ble Minister had ensured uninterrupted power for the remaining days.

But recently TNEB has issued notices to all the textile mills to operate Gensets during the peak hours in addition to power holiday. Further, there are unscheduled shut downs ranging from 1 to 2 hours in the normal period.

All these put together would affect the production by over 35% in the State totally upsetting the textile business. The cloth imports have already doubled and the competing countries and other States would take advantage of the situation and grab all the customers.

This situation would push the textile industry in Tamil Nadu into deep crisis. The acute power shortage situation is likely to continue for next three or four years during summer season.

Dr.Srinivasan has pointed out that inspite of several representations, meetings, press releases etc, TNEB has not come out with a concrete proposal, distribute the shortage uniformly across the State, announce suitable power holidays and supply uninterrupted power during the remaining period though the industry has promised to extend its full support to manage the power crisis in the State.

Dr. Srinivasan has said that the Association has sent a representation to the Hon'ble Chief Minister requesting to intervene and streamline the system to minimise the losses incurred by the labour-intensive textile industry.

The Southern India Mills' Association

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